Mrs ELLIOT (3:47 PM) —I move:

The cost of petrol is hurting families and businesses in regional areas across Australia, and my electorate of Richmond is no exception. Locals are telling me loud and clear that they are doing it tough and they are sick and tired of this government doing nothing about the massive increases in petrol prices. Businesses are finding it harder and harder to keep in the black because their stock prices, delivery costs, running costs and production costs have gone up—all flowing on from the huge rises in petrol prices. To add to this, soaring petrol prices are having a huge impact on our lucrative domestic tourism industry as families realise it is just too expensive to get on the road for their holidays.

The Northern Rivers region, which includes my electorate of Richmond, is one of the most popular tourist destinations in Australia. Consequently, tourism is one of our most important industries and many local businesses depend either directly or indirectly on the tourist dollar for their survival. For local families, the cost of living—or simply surviving—is going up and up all the time. Health care, food and housing prices have all risen, and petrol prices have skyrocketed to over $1.20 a litre in parts of my electorate. The Howard government tells us that petrol prices are solely dependent on world prices and that nothing can be done. This is not much comfort to the mums and dads in my electorate who are breaking the family budget at the bowser every week. The government is just plain wrong. Global prices are not the only factor impacting on petrol prices.

We all saw the press reports last week on petrol price gouging and Caltex’s staggering profits. An article in the Daily Telegraph on 29 November 2005 entitled ‘Petrol giant’s $70 million rip-off’ said:

What this means is that, months after world prices have dropped, motorists are still being charged at the bowser on the basis of higher world prices. The profit Caltex made on each barrel of refined crude oil surged from $9.54 to an average of $15 in the second half of the year. So we are not talking about small bickies. Caltex revealed a staggering $70 million jump in post-tax profit to $420 million. Ordinary Australians are footing the bill for this profit, especially those from regional areas such as my electorate of Richmond.

The General Manager of Fueltrac, the price monitoring firm, Geoff Trotter, said that oil companies have especially not passed on any price decreases to rural and regional centres of Australia. In short, where petrol companies do not have to compete, they simply will not. So in regional centres, where wages are lower, unemployment is higher and people can least afford it, we are being ripped off the most at the bowser by oil refineries. In the words of the President of the NRMA, Alan Evans, ‘the Howard government must get off its behind’. And it certainly should.

Federal Labor is calling on the Howard government to show some leadership on this issue and do something about it. First, we need an ACCC inquiry into petrol prices and we need it now. Local people are constantly telling me that some action has to be taken. We need to have that inquiry started immediately. The ACCC themselves have said something funny is going on. The rest of Australia knows something funny is going on, so it is about time the Howard government did something about it. It is not enough for the Prime Minister to sit down with his big mates from Caltex, BP and Shell and let them satisfy him that they are not petrol gouging. We need an independent ACCC to monitor prices and ensure that consumers are being protected from the price gouging around Australia.

Second, we need to develop a long-term strategy to reduce our dependence on overseas oil. This is vitally important for our future. If we take no action now, we face the very real possibility of $5 per litre prices at the pump within 10 years. Labor’s blueprint for developing the Australian fuel industry outlines how we can foster an Australian fuel industry and provide relief to families at the petrol bowser in the long term. While Mr Howard sits on his hands, we as a nation are becoming increasingly dependent on foreign oil. We need to put measures in place immediately to increase the use of Australian fuels so that we are less vulnerable to external price shocks. We need to develop existing alternatives such as liquid petroleum gas, ethanol and biodiesel and emerging alternatives such as compressed natural gas, liquid fuel from gas and stored electricity.

Australians deserve a government that is willing to show some leadership on petrol gouging and a plan for the future. People in regional areas are doing it tough. They see petrol prices increase day by day and week by week and they want to have something done about it. They need to be relieved of the burden of having to continue to pay these high prices. (Time expired)

The DEPUTY SPEAKER (Mr Jenkins)—Is the motion seconded?

Mr Brendan O’Connor —I second the motion and reserve my right to speak.